Pay interest on loan money unused???

F

fitz123

Guest
I have been approved and been forwarded a facility to draw down 10,000euros. I have signed a credit agreement making me pay 8.13% interest on this loan. I am full time postgraduate student and have agreed previously to meet with my bank in september this year (when I graduate) to agree terms to pay back the loan then,

However, I have not needed to use the loan money yet and it now looks like I will only need to borrow 3000euros instead of the original 10000euros.

My question is will I need to pay back the full 10000 plus interest like I originally agreed (but still havent taken 10000 out) or will I now just have to pay 8.13% interest on the 3000 I plan to take out in the next month???

im guessing I only pay interest on actual loaned money but could anyone clarify this for me please???...Im worried that because I signed a credit agreement with the figure of 10000 that I will obliged to deal with this instead of the 3000 I expect to use..

any help would be much appreciated...
 
You should only have to pay interest on the amount of money that you have actually taken. To avoid any confusion now or for the future, you should write to your Bank advising them of your circumstances and telling them you do not need €10 k but only €3 k and that for clarification purposes expect to be charged on the amount drawdown only
 
Hi,

You'll only have to pay interest on the amount you eventually drawn down (you might have to sign new documentation when you are drawing down your loan) - by the way - just check with your bank to ensure the loan hasn't been drawn already, I'd just be concerned that whatever doc's you've already signed may also have been an instruction to draw down also - if it has, just arrange to repay until you need to actually your loan.

There shouldn't be any problem with the above...

Regards,

BM
 
thanks for your help, im going to get in contact with my branch to clarify..

thanks again, much appreciated
 
You must log in or register to reply here.
Back
Top